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MONTHLY BUSINESS REVIEW
Covering financial, industrial, and agricultural conditions
in the
Fourth Federal Reserve District
Federal Reserve Bank of Cleveland
Vol. 8
Cleveland, Ohio, March 1, 1926
As a rule, February is the dull or “dead” season for
many lines of business, which normally experience an
increase in activity with the opening of spring. This sea
sonal dullness has been present during the past few
weeks, and there is little sign as yet of the real trend of
business for the spring season. There are indications
that progress in iron and steel and some other lines
has hardly been up to the expectations of some who were
perhaps over-optimistic at the beginning of the year;
but the business situation in general during the first two
months of 1926 has been satisfactory. Comparative
figures available for January show that check payments,
car loadings, building permits, and automobile and soft
coal production continued to run ahead of the same
month in the preceding year. On the other hand, the
Federal Reserve Board’s index of production in basic
industries was lower than a year ago; commercial failures
were more numerous; and pig iron and steel ingot out
put declined from last year, though slightly. It should
be borne in mind that, eliminating seasonal factors, Jan
uary and February of 1925 were unusually good months,
owing to the impetus of the upswing which started in
the last quarter of 1924 after the pronounced depres
sion of the second and third quarters of that year. The
situation a year ago, therefore, was different from
that at present, in that business activity has now been
at a high level for several months (again eliminating
seasonal factors).
In the Fourth District, conditions were somewhat
spotty during January and early February, though the
general situation appeared satisfactory. Manufacturers
for the most part reported a normal volume of busi
ness. The settling of the anthracite strike caused a
decline in soft coal and coke prices, and iron and steel
prices were also weak. Building permits were 11.8 per
cent less in January than in the same month in 1925.
Department store sales gained very slightly, but some of
the wholesale trades were noticeably depressed—particu
larly groceries and dry goods. Wholesale shoe sales,
however, were the highest for any January in the past
six years. Financial conditions continued strong, bank
debits having increased 8.8 per cent, and savings de
posits 6.3 per cent, over a year ago.
Financial
Conditions
No. 3
January 30, 1925y but a decrease of 1.5 per cent from
December 30, 1925.
Commercial failures in this District, according to
R. G. Dun and Company, numbered 244 in January,
as compared with 194 in December and 199 in January
1925. Liabilities aggregated $5,581,160, as compared
with $4,937,059 a year ago. In the United States, there
were 2,296 failures in January, 1,878 in December, and
2,317 in January 1925.
The following table gives the changes in the main
items of the balance sheets of the Federal Reserve and
reporting member banks:
Federal Reserve
Bank of Cleveland
(In Millions)
Feb. 10 Feb. 11 Jan. 13
1926
1925
1926
Gold reserves ...........
Discounts ......................
Acceptances
...............
U. S. Securities .......
Total bills and secur
ities ...........................
Federal Reserve notes
in circulation .......
Total Deposits ...........
307
50
15
32
259
33
37
45
294
66
8
36
2,795
533
301
333
2,896
332
325
390
2,799
506
327
369
98
117
111
1,177
1,060
1,212
204
189
188
179
219
180
1,668
2,296
1,714
2,242
1,733
2,325
Reporting: Member Banks—
Fourth District
(In Millions)
Feb. 3 Feb. 4 Jan. 6
1926
1925
1926
Loans
secured
by
stocks and bonds.... 503
424
498
All other ...................
769
745
770
1,170
1,268
Total loans ............... 1,272
Investment* .................
625
649
624
Demand deposits ....... 1,007
1,015
986
Time deposits ...........
761
707
749
Reporting
Member Banks— System
(In Millions)
Feb. 8 Feb. 4 Jan. 6
1926
1925
1926
5,528
8,448
13,976
5,478
13,036
5,404
4,745
8,368
13,113
5,453
13,040
4,900
5,688
8,492
14,185
5,444
13,305
5,861
Market activity in iron and steel for
the first two months of the new year
Steel
still has failed to measure up to the
general expectations. Here and there
a soft spot has appeared, contributed
largely by seasonable influence and also in some measure
by an unbalanced demand. With present production so
high, with some capacity still in reserve and with de
livery service by the railroads so exceptionally efficient,
buying for future requirements is light. However, the
mills continue to ship out tonnage approaching a recordbreaking rate and there is every indication that con
Savings deposits of sixty-seven se- sumption for current needs continues very large. In
lected banks in the larger cities of the proportion to the volume of production and shipments,
Fourth Federal Reserve District unfilled orders are unusually low as compared with stand
amounted to $846,131,915 on January ards of the past. Contrasted with the early months of
30, an increase of 6.3 per cent over 1925, tonnage apparently is better spread out. The high
Iron
Federal Reserve System
(In Millions)
Feb. 11 Jan. 13
1925
1926
Feb. 10
1926
and
2
THE M O N T H L Y B U S I N E S S REVI EW
market pressure one year ago, which faded out sharply
by the end of March, seems absent this year.
January showed a further gain in steel production,
and with one exception reached the highest point for
any January in history. The ingot output, approximat
ing 89 per cent of the country’s theoretical capacity,
was within 1.2 per cent of the greatest month on rec
ord, and indicated an annual rate of production of 49,680,000 tons. This is a gain of 4.4 per cent over De
cember and 2.8 per cent over January 1925. Pig
iron in January as compiled by IRON TRADE REVIEW
showed a gain in total of 2.2 per cent over December
or a total of 3,222,672 tons compared with 3,249,357 tons.
However, the number of furnaces in blast at the end
of the month had fallen by nine to 227, or 58.5 per
cent of the total number of furnaces in the country.
The true significance of this decline in operating fur
naces is obscured by the fact that a number of stacks
were banked to enable them to sell their coke in the
open market and to avail themselves of the abnormally
high prices which had resulted from the coal strike.
The effects radiating from the anthracite coal strike
have produced an abnormal market behavior in some
lines which has found some reflection in the general
situation. These elements of artificiality are now rapidly
being eliminated as a result of the strike settlement.
After having sold up to $13 and $13.50, ovens, coke
has fallen to the more rational basis of $4 to $5 and
is still in process of deflation. This precipitate drop
has caused some buyers of iron and steel, particularly
in pig iron, to hold back to see if prices in other lines
will not be affected by the backwash. Nothing definite
of this sort yet has appeared. Pig iron makers are
pointing out that even current coke prices are higher
than those at which they had contracted for some
months ago covering present production.
Building activity has not measured up to that of
a year ago, as far as steel requirements are concerned.
The automobile industry is operating at a higher rate
today than at this time in 1925 and is increasing its
output. Advances in oil prices are the stimulus to the
launching of new plans for pipe lines and greater de
velopment work, some of which involve large tonnages.
The railroads continue to place their needs conserva
tively, especially in rolling stock. However, the num
ber of cars ordered in January, totaling 8830, showed
a marked improvement over the 1695 placed in Jan
uary 1925. Miscellaneous steel demand appears to be
holding up well.
Keen competition, especially where capacity is very
large, has brought about greater price softness over
30 days ago, particularly in sheets, plates, and in some
localities, in pig iron. Some of these irregularities have
resulted from failure of the producers to maintain ad
vances which they had announced for first quarter.
IRON TRADE REVIEW composite of fourteen leading
iron and steel products reflects this modest yielding
of prices. In the third week in February it stood at
$38.90 compared with $39.15 one month previously and
with $39.20 at the beginning of the new year.
Negotiations are beginning on Lake Superior iron
ore for the season of 1926.
event of greatest importance in the
coal industry during the past month
was the settlement of the anthracite
strike early in February. One of the
effects of the settlement has been a
decline in the price of some grades of soft coal and
coke, the drop in the case of coke being particularly
severe. The Coal Age average of spot prices of bi
tuminous coal declined from $2.14 per ton on Feb
ruary 8 to $2.10 on the 15th. On January 8 it stood
at $2.19. Coke prices rose from $4.50 to $10.50 per
ton between January 8 and February 5, but have re
ceded to a marked degree since the latter date.
Production of bituminous coal during the five weeks
ending February 6, according to the Bureau of Mines
exceeded that for the same period of any of the pre
ceding four years, the gain, over last year being con
siderable. Retailers in this District report a large vol
ume of business during recent weeks.
Auto production for January by A m er
ican manufacturers (including Cana
dian plants) totaled 282,369 passen
ger cars, and 31,502 trucks, accord
ing to figures furnished by the Fed
eral Reserve Bank of Chicago in cooperation with the
National Automobile Chamber of Commerce. This was
an increase over January 1925, of 35 per cent for p as
senger cars and 17 per cent for trucks. Total January
output was almost as great as that of December.
Truck manufacturers in this District report that busi
ness in January and the first part of February has been
well ahead of last year, and that orders are being re
ceived in encouraging volume. Makers of auto p arts
also report an unusually large amount of business, in
some cases at record levels. The hand-to-mouth buy
ing policy of customers is causing some difficulty, owing
to the fact that it is necessary to buy materials for
standard lines of auto parts m excess of sales orders
Automobiles
Business of tire manufacturers in this
District quieted down more than sea
sonally during January, but has picked
up noticeably in February. During
January, dealers were restricting their
purchases to their immediate needs, partly because of
hesitation as to the course of tire prices due to the
continued decline in the price of crude rubber, which
was around 69 cents a pound in February as compared
with 88 cents early in January, and partly because the
manufacturers did not begin to solicit spring stock or
ders until February 1, three months later than f or"
merly. During the first week of February, tire prices
were cut about 10 per cent, and this, together with
spring stock ordering, has been largely responsible for
the increased activity of recent weeks. Crude rubbe
prices have sagged off somewhat during February but
not to the same extent as during the first part of’j a ”
uary. On February 16, crude rubber was quoted at 63
Rubber and
Tires
THE M O N T H L Y B U S I N E S S REVI EW
cents, as compared with 69 cents at the opening of the
month.
Reports indicate that the demand for original tire
equipment has held up better than that for renewals,
doubtless because of high automobile production. Busi
ness in hard rubber lines continues excellent.
The first rubber exchange in the United States, known
as the Cocoa and Rubber Exchange of America, opened
on February 2. This was followed by the opening of
a second, the Rubber Exchange of New York, Inc. The
membership of both consists of foreign firms as well as
those in this country.
It is reported that rubber trees are being planted in
Panama, and attention has also been attracted to the
output of Mexican guyale rubber. This rubber is ob
tained from shrub trees which formerly grew wild in
certain parts of Mexico, but which during recent years
have been cultivated and developed commercially. Guyale
is said to be as satisfactory for most uses as crude rub
ber found in other parts of the world.
Stocks of tires in dealer’s hands are reported to have
increased materially since the Department of Commerce
report as of October 1. At that time the average cas
ings per dealer were 56.6 as compared with 62.2 on April
1, and 53.6 on October 1, 1924. Production of high
pressure inner tubes, according to the Rubber Asso
ciation of America, totaled 3,814,617 in December, as
compared with 3,430,209 in November and 4,259,609 in
December, 1924. December shipments showed a 30 per
cent decline from the preceding year. Production and
shipments of balloon tubes in December continued to
run far ahead of the preceding year.
3
ly. As compared with a year ago, however, wool was
nearly 25 per cent lower, raw cotton 17 per cent lower,
and cotton goods about 10 per cent lower.
Sales of 19 wholesale dry goods houses in the Fourth
District in January ran 6.4 per cent under January, 1924,
and 22.2 per cent under December. Stocks on January
31 were 6.3 per cent lower than the preceding year.
Sales of woolen dress goods by department stores in
this District for the year 1925 were 16.7 per cent less
than in 1924; cotton dress goods, 9.9 per cent less; silks
and velvets, 15.3 per cent greater; men's clothing, 0.4 per
cent greater; women's coats, 0.1 per cent greater; women’s
dresses, 3 per cent greater; sweaters, 20.4 per cent less.
Boot and shoe factories have been busy
with Easter orders for the past month.
Customers have ordered but little be
yond Easter delivery, but new samples
are being made up preparatory to be
ing sent out on the road in March. Manufacturers in the
Cincinnati territory state that immediate prospects are
good.
Preliminary reports indicate a gain in shoe production
in this District during January as compared with De
cember of 4.5 per cent. Final figures for December show
an increase of 7.2 per cent over the same month in 1924.
The output for all of 1925 was nearly 10 per cent greater
than for 1924.
Sales of reporting wholesale shoe firms in the Fourth
District during January gained 12 per cent over a year
ago, but fell off 17.4 per cent from December, attributable
entirely to seasonal factors. Stocks on January 31 were
6.6 per cent below those of a year ago.
Paint
Conditions in the paint and varnish
January sales of men’s shoes in department stores were
industry in the Fourth District are sat 0.8 per cent greater than in January, 1924, and of women’s
isfactory, according to the reports of shoes were 6.6 per cent greater.
manufacturers. Orders in most cases
are being received in good volume. The
Manufacturers engaged in various lines
bad weather of fall and winter, making outside paint General
ing difficult, has held the household lines back to some Manufacturing of industry in the Fourth District re
port that conditions in early February
extent. Further development of the lacquer line is
are very much the same as a month
reported. No change has taken place in the hand-topreviously. In some cases, a tendency
mouth buying policy of customers, which appears to
have become well-established in the paint industry, at toward recession is observed which is slightly more than
seasonal, but the trend of business for the spring months
least for the time being.
can hardly be determined as yet. Buying by customers
in nearly all cases continues to be on a restricted basis,
Clothing
Clothing manufacturers in this District so
manufacturers in general are “marking time” to
report some seasonal increase in ac somethatextent,
awaiting the opening of spring before shap
tivity during February. In men’s cloth ing their operations
for that season.
ing, production for spring delivery con
tinues. Style changes have retarded
early retail buying to some extent. An important maker Agriculture and In the strictly agricultural communities,
at this season of the year, interest
of women’s wear states that a recovery from the 1925 Live Stock
recession is taking place in this line, aided by a down
largely centers around the live-stock
ward revision of prices which has stimulated production
situation. In this connection, it is of
and distribution. In worsteds, orders for Easter delivery
interest to note the gradual rise in
have recently been placed in large volume, causing a prices of dairy products during the past several months.
marked increase in factory operations. Seasonal quiet The two factors entering into this are the natural in
is reported in the knit goods industry, awaiting the crease in consumption in the cities, and the decrease
in the number of milk cows and heifers on the farms.
opening of the spring season.
Prices on February 13 showed no great change from The United States Bureau of Agricultural Economics
a month ago, wool and raw cotton having stiffened slight is authority for the statement that consumption of fluid
Shoes
4
THE M O N T H L Y B U S I N E S S REVI EW
milk in the cities increases about five per cent yearly,
while the past year showed a decrease of one per cent
in cows and nine per cent in heifers on the farms.
Fluid milk prices during the latter half of 1925 ranged
from six to twenty per cent higher, and prices of butter
and cheese averaged six per cent above the corresponding
period of 1924.
The United States Department of Agriculture reports
a decline for all classes of cattle in the country of
four per cent, which appears to be fairly evenly distribut
ed throughout the several districts.
The decrease in the number of hogs is shown as eight
per cent for the whole United States, with Ohio show
ing a loss of nine per cent; Pennsylvania, seven per cent;
and West Virginia about fifteen per cent.
The decreased production in all classes of live stock has
brought about considerable increases in prices, with the
result that the total valuation has increased nearly seven
per cent.
The decline in the number of horses for the year 1925
is but a continuation of the downward trend which has
been going on for several years. There is some evidence
of increased interest in the breeding of the better strains
of horses in this district, but not to a sufficient extent
to check this downward trend. Throughout the bluegrass regions of Central Kentucky the raising and devel
opment of thorough-bred horses has always been one of
the principal industries, and is still rated as one of the
chief sources of revenue.
Further sales have recently been an
nounced by the Burley Tobacco Asso
ciation, bringing the Association’s total
for the season up to February 4 to
about 125,000,000 pounds, including pur
chases by the Italian Government. Deliveries of the
previous sales are being made as rapidly as possible.
At the beginning of February, the Association still had
on hand about 60,000,000 pounds of the 1923 crop and
35,000,000 pounds of that of 1924. The Association re
ports that the 1925 crop is being taken by manufac
turers almost as fast as received from the growers.
According to the Commissioner of Agriculture’s report,
January sales of burley through the loose leaf ware
houses were about 33,000,000 pounds. Total loose leaf
sales of burley for the 1925 crop up to February were
nearly 60,000,000 pounds, or somewhat higher than sales
of the 1924 crop during the corresponding period last
year.
Prices being received for burley in the Fourth District
are generally satisfactory. Loose-leaf sales in January
averaged $19.73 per 100 pounds, or $2.14 less than in
the same month last year; but reports indicate that
prices have been a little firmer in February, and that they
compare very favorably with prices being received for
Green River tobacco in western Kentucky, which is not
in the Fourth District.
Production figures for 1925 of all types of tobacco
show that Kentucky was the greatest producing state,
with 29.1 per cent of the total for the country. Ohio
Tobacco
produced 3.8 per cent; Pennsylvania, 4.3 per cent; and
West Virginia, 0.5 per cent. The United States D epart
ment of Agriculture estimates the 1925 crop of burley
at 271,000,000 pounds, or about 20 per cent of the total
for all types. The 1924 burley production was 299000,000 pounds.
Retail
Trade
Department store sales in the Fourth
District increased very slightly during
January as against a year ago, the
gain being 0.2 per cent. Six of the
eleven centers shown separately re
ported increases, the largest being in Cincinnati, with
9.6 per cent.
With regard to sales by individual departments, twentyfour out of fifty-two departments reported by 73 firms
in the Fourth District showed an increase over Jan
uary of last year. The greatest gains occurred in m usi
cal instruments, 32.8 per cent; lamps and shades, 25.7
per cent; and silk underwear, 22.3 per cent. Decreases
of over 20 per cent were shown by woolen dress goods,
women’s suits, women’s skirts and waists and blouses'
Percentage changes in the departments doing the great
est business in January were as follows:
% change—Jan. 1926 compared
with Jan. 1925
Silks and Velvets
4- 6.3%
Linens
— 1.4
Domestics
— 1.9
Toilet Articles, Drugs
-f 0.4
Men’s Clothing
— 3.0
Men’s Furnishings
-f 8.4
Women’s Coats
— 3.1
Women’s Dresses
4- 4.4
Misses’ Ready-to-Wear
— 7.0
Furs
+13.9
Millinery
— 8.5
Women’s and Children’s Hosiery +10.9
Shoes
+ 4.9
Furniture
— 8.8
Floor Coverings
—2.9
Sales of twenty wearing apparel firms in January in
creased 5.7 per cent over the same month last year, but
decreased 36.0 per cent from December on account of
seasonal factors. Stocks at the close of January ran
4.2 per cent higher than a year ago.
Wholesale
Trade
Sales of wholesale grocery firms during January dropped 5.8 per cent below
last year, all reporting cities expe
riencing a loss. The largest declines
took place in Akron, with 12.9 r»er
cent, and Youngstown, with 11.7 per cent, while Toledo
with 0.2 per cent recorded the smallest decrease.
Dry goods and hardware decreased 6.4 and 7 6 ner
cent respectively from January, 1924, but drugs gained
1.6 per cent and shoes 12.0 per cent.
Wholesale shoe sales in January were the highest
for any January during the past six years. Drugs also
THE M O N T H L Y B U S I N E S S REVI EW
compared favorably with previous Januarys, but dry
goods sales were the lowest in six years, and the same
was true of groceries, with the exception of 1922.
This bank’s weighted index number of wholesale trade,
including 104 firms in five lines of trade, stood at 80.8
in January (1919-1923 monthly average—100). This was
slightly higher than in January, 1921 (78.8) and 1922
(70.8), but fell below the same month in 1923, 1924, and
1925. The index of January, 1923, was 88.2; 1924, 87.7;
1925, 81.3.
For the tenth successive month the
value of building permits in the United
States in January broke all records for
corresponding months in previous years.
Valuation in 168 cities, according to
Bradstreet’s, aggregated $229,609,114, a gain of 8.8
cent over January, 1924. The Middle Atlantic, South
western and Southern sections of the country accounted
for the gain.
In the Fourth District, the valuation of permits in
Building
Building Operations
January 1926
(Valuation of Permits)
January
1926
Akron..........................................................
$ 463,174
A shtabula...................................................
8,600
B arberton...................................................
18,172
C anton........................................................
198,720
Cincinnati..................................................
1,155,030
Cleveland proper....................................
2,822,800
“ Suburbs:
Cleveland H eight*...........................
333,400
East Cleveland.................................
129,383
E uclid...................................................
129,965
Garfield H eights............................
138,500
232,700
Lakewood............................................
P arm a...................................................
75,325
Rocky R iver......................................
30,650
Shaker H eights.................................
232,000
Columbus..............
1,003,900
Covington, K y .........................................
53,200
D ayton.......................................................
370,810
121,015
Erie, P a......................................................
Lexington, K y ...................................
351,824
Lim a.............................................................
464,385
M ansfield....................................................
65,400
N ew ark.......................................................
5,000
Norwood.....................................................
123,970
Pittsburgh, Pa..........................................
3,792.755
Springfield...........................................
58,690
Toledo.........................................................
405,497
Wheeling, W. Va....................................
65,090
Youngstown..............................................
1,017,350
T otal........................................................
n . 867,305
January Per cent
1925 change
$1,072,307 — 56.8
20,120
— 57.3
28,313 — 35.8
504,582 —60.6
1,355,010 — 14.8
3,454,125
— 18.3
843,000
—60.5
399,733 —67.6
75,275
+ 7 2 .7
145,500
— 4.8
526,875 — 55.8
35,500 + 112.2
29,800
+ 2.9
453,000 —48.8
1,005,600
— 0.2
129,750 — 59.0
353,801
+ 4 .8
80,345
+ 5 0 .6
63,295 + 455.8
64,895 + 615.6
806,700 —91.9
23,550 — 78.8
66,650
+ 8 6 .0
3,296,852
+ 1 5 .0
57,850
+ 1.5
392,892
+ 3.2
125,921
—48.3
302,625 + 23 6 .2
15.713,866
— 11.8
5
28 cities in January amounted to $13,867,305, a decline
of 11.8 per cent from the same month last year. Very
large declines occurred in Akron, Ashtabula, Canton, Cov
ington, Mansfield, and Newark, while substantial gains
were recorded by Erie, Lexington, Lima, and Norwood.
At the foot of this page appears a table showing build
ing operations in the main centers in this District dur
ing the post-war period. It will be noted that except in
1921, the value of each year’s permits increased over
the year before in the District as a whole. Some in
dividual cities did not follow this trend. For the Dis
trict, 1925 was easily the best year, but this was not true
of Akron, Cleveland, Lexington, Springfield, and Wheeling.
Comparative inactivity continues in the
lumber trade in the Fourth District.
Weather conditions have retarded out
side work, and orders in general are
not plentiful. Manufacturers, however,
are reasonably optimistic, feeling that the present situ
ation is not unusual when the time of year and the
severe winter are taken into consideration. Prices have
shown but little variation recently, the Aberthaw in
dex of industrial building costs remaining unchanged
at 195 on February 1. Retail dealers are buying cau
tiously, awaiting the breaking-up of winter. Demand
for lumber by furniture manufacturers is stated to have
been heavy during January.
In the common brick industry, some quieting down
has recently taken place, due to seasonal closing of
plants. Paving brick manufacturers have also been ex
periencing seasonal inactivity, but prospects as meas
ured by unfilled orders are reported to be somewhat im
proved over last year at this time. Shipments by hol
low building tile manufacturers were very large in
January, and orders now booked are sufficient to keep
operations at a high level for some time. Concrete busi
ness has increased during the past few months.
Cement production in Ohio, West Virginia and West
ern Pennsylvania, totaled 523,000 barrels in January, as
compared with 764,000 a year ago. Shipments in Jan
uary, 1926, were 382,000 barrels, and in January, 1925.
were 346,000 barrels.
Building
Materials
Fourth District Building Operations
Akron.....................
C anton...................
Cincinnati.............
Cleveland...............
Columbus..............
D ayton............
Eric......................
Lexington..............
Pittsburgh.............
Springfield.............
Toledo....................
Wheeling................
Youngstown..........
D istrict...................
*Not available.
Valuation, by selected cities, 1919— 1925.
(In thousands of dollars)
1919
1920
1922
1921
1923
27,225
3,783
4,551
20,348
7,493
*
*
3,863
6,014
7,396
16,197
10,245
13,188
25,944
26,647
47,708
65,625
46,532
52,148
69,391
6,346
18,191
9,265
10,157
22,297
5,858
6,133
11,509
8,055
10,275
3,701
3,358
4,861
3,305
4,263
2,027
3,914
1,183
2,192
1,947
23,429
35,246
14,657
17,051
33,119
1,336
791
1,274
2,188
1,533
7,739
9,207
7,899
6,699
15,537
1,252
1,153
3,432
482
3,986
5,754
3,354
5,339
6,225
5,677
136,362 151,839 129,824 179,908 209,561
1924
8,837
7,982
24,423
63,015
21,626
9,748
7,036
1,761
34,256
1,924
16,930
5,158
11,834
214,530
Total after
1925 war period
14,505
86,742
8,034
33,289
31,114 147,758
69,254 413,673
29,510 117,392
12,484
64,062
8,696
35,220
1,966
14,990
41,512 199,270
1,598
10,644
81,746
17,735
18,757
3,294
50,508
12,325
252,027 1,274,051
THE M O N T H L Y B U S I N E S S REVI EW
6
Retail and Wholesale Trade
D E PA R T M E N T STORES
Akron.
..................................................
C an to n .................................................................
C incinnati...........................................................
Cleveland............................................................
Colum bus............................................................
D ayton.................................................................
New C astle........................................................
P ittsburgh...........................................................
Toledo..................................................................
W heeling.............................................................
Youngstown.......................................................
Other C ities.......................................................
D istrict................................................................
W EA RING A PPAREL
C incinnati...........................................................
C leveland............................................................
Other C ities.......................................................
D istrict...............................................................
F U R N IT U R E
C incinnati...........................................................
C leveland............................................................
Colum bus............................................................
D ayton.................................................................
T oledo..................................................................
Other C ities.......................................................
D istrict................................................................
C HA IN STORES*
Drugs— D istrict................................................
Groceries— D istrict..........................................
W HOLESALE G RO CERIES
A kron.................... ...............................................
C leveland............................................................
E rie.......................................................................
P ittsburgh...........................................................
Toledo..................................................................
Y oungstown.......................................................
Other C ities.......................................................
D istrict................................................................
W HOLESALE DRY GOODS.....................
W HOLESALE D R U G S...................................
W HOLESALE H A R D W A R E ........... ..
W HOLESALE SH O ES....................................
* Sales per individual unit operated.
5
5
7
6
6
4
3
7
5
5
3
13
69
6
3
11
20
9
3
11
3
5
11
42
3
5
3
4
4
10
3
3
28
55
19
16
16
7
% Incr. or Deer.
SALES
Jan 1926
compared with
Jan. 1925
+ 0 .4
—3.8
9.6
—1.6
1.5
+
+
+
1.7
0.04
7.0
+0.6
+
—
—5.5
2.1
—
+
4.9
—
3.1
+
5.7
Index Numbers of Trade in the Fourth Federal
Reserve District
(Average M onthly Sales for the Five-Year Period 1919-1923, nclusi ve--- 100)
fan.
Jan.
Jan.
Jan.
Jan .
L922
1923
1924
1925
1926
D epartm ent Stores (55)*. . .
74
88
94
92
92
Wholesale Drugs (15)*..........
91
115
109
110
111
Wholesale Dry Goods (18)*.
74
97
87
68
64
Wholesale Groceries (50)*...
69
79
84
80
74
Wholesale Hardware (15)*. .
60
94
95
94
86
Wholesale Shoes (6)*.............
45
45
44
48
56
Wholesale— All (104)*...........
71
88
88
81
81
Chain Drugs (3)*....................
86
98
91
97
9S
* N um ber of firms.
Debits to Individual Accounts
+0.2
+ 12 .3
+ 7 .8
13.0
4.1
—
+
—
15.0
16.2
—
14.3
—
— 17.6
— 22.7
+0.8
6.0
— 12.9
— 7.8
— 1.6
— 16.9
— 0.2
— 11.7
—
—
—
1.3
5.8
—6.4
+1.6
— 7.6
+12.0
A kron...........................
Butler, P a...................
Connellsville, P a ....
Greensburg, Pa.........
Hom estead, Pa.........
Lexington, K y ..........
Oi! City, P a..............
Pittsburgh, Pa..........
Springfield..................
Steubenville...............
Wheeling, W. V a...
Youngstown...............
T o ta l........................
(In thousands of Dollars)
5 weeks
1926
ending % change
o date
Feb. 17 from
>ec. 311926
1925
eb. 17)
105,533 + 1 7 .6
153,095
12,848 + 13 .1
18,987
55,057 + 3.5
83,668
473,464 + 20 .2
589,233
804,476 + 10.5
262,440
171,051 + 9.0
264,474
5,776 + 9.2
8,244
95,824 + 22 .8
145,451
39,850 + 9.3
57,575
25,335 + 2.0
3 s ,588
4,843 + 5.5
6,880
36.526 — 10.7
50,653
16,801 — 18.8
26,162
6,266 — 18.4
9,144
15,578 — 6.5
22,564
1,135,122 + 2.7
S0^8f>0
27,313 + 14.6
42,182
11,824 — 4.6
18,005
244,699 + 17.0
J74,807
15,920 + 2.1
22,528
63,368 + 23 .4
91,543
74,431 — 0.3
114,097
14,198 + 5 .1
21,103
3,456,103 + 8.9
5,128,313
1925
or
to date % incr.1926
(Jan. 1- deer.over
Feb. 18) 1925
126,650 + 2 0 .9
16,847 + 12. 7
78,021
580,051 ++ 1 78 .2.8
1,090,884 + 1 5.7
226,004 + 1 7.0
7,408
120,729 ++ 12 10 .3
.5
51,913 + 10.9
34,683 + 2.6
6,510 + 5 .7
57,020 —
29,548 — U.2
11.5
11.001
1 6.9
22,°02 —
—
1.5
1,565,401 + 2.8
35,180 + 19.9
18,284
1.5
315,567 —
22,794 —+ 1 8.8
1.2
76,098
117,633 —+ 2 03.3.0
19,247 + 9 ,6
4,630.375 + 1 0 .8
Fourth District Business Statistics
(All figures are for Fourth D istrict unle»« otherwise specified)
B ank Debits (23 cities)
Millions of dollars .
Savings Deposits (end of month)
Thous. of dollars . .
Ohio (43 banks)
W estern Pennsylvania (27 banks)
T otal (70 banks)
Actual N um ber
Commercial F ailu res— Num ber
Thous. of dollars .
”
“
— Liabilities
Postal Receipts-— 9 cities
Sales — Life Insurance — Ohio and Pa.
“ — Dept. Stores — (55 firms)
“ — Wholesale Grocery — (50 firms)
“ —
“ Dry Goods— (19 “ )
" —
" H ardware — (16 “ )
" —
Drugs
— (16 " )
Building P erm its, V aluation— 28 cities
Production — Pig Iron, U. S.
Thous. of Tons
“
— Steel Ingots, U. S.
“
— Automobiles, U. S.
Passenger Cars
Actual Num ber
Trucks
— Bituminous Coal, 4th Dist.
Thous. of tons
barrels .
“
— Cement; Ohio, W. Va., Wn. Pa.
— Petroleum , O., Pa., Ky.
pairs
“
-— Shoes, 4th Dist.
casings.
“
— Tires, U. S.
tons
Bituminous Coal Shipments (from Lake Erie ports)
Iron Ore Receipts (at Lake Erie ports)
‘Figures confidential
3D tc«m bcr, 1925
January
1926
3,302
607,527
234,105
841,632
244
5,581
2,884
76,192
20,269
6,444
2,814
1,759
1,779
13,867
3,316
4,153
282,369
31,507
20,725s
523
1,758*
3,627*
Jan u ary
1925
3,035
565,654
226,343
791,997
199
4,937
2,732
83,249
20,338
6,923
3,006
1,904
1,751
15,714
3,372
4,199
209,241
26,984
17,394*
808
1,716*
i
3,495*
%
change
+8.8
+ 7.4
+ 3.4
+ 6 .3
+22.6
+ 13.0
+ 5 .6
—8.5
—0 .3
—6 .9
— 6 .4
— 7 .6
+ 1.6
— 11.8
—1.7
—1.1
+ 34.9
+ 16.8
+ 19.1
— 35.3
+2.4
+7.2-'
+ 3.8
THE M O N T H L Y B U S I N E S S REVI EW
7
Summary of National Business Conditions
(By the Federal Reserve Board)
Industrial activity in January was in slightly smaller volume than in
December, and the distribution of commodities showed a seasonal decline.
The level of prices remained practically unchanged.
seasonal variations
<1919— 100).
ure— January, 120.
w holesale
Latest
fig
p rices
_L
~ 1923
4
Index of U. S. Bureau of Labor Statistics.
(1913— 100, base adopted by Bureau). Latest
figure— January, 156.
Production
The Federal Reserve Board’s index of production in selected basic in
dustries was about one per cent lower in January than in December. The
output of iron and steel, copper, and zinc increased, while activity in the
woolen and petroleum industries declined, and mill consumption of cotton, the
cut of lumber, and bituminous coal production increased less than is usual
at this season of the year. Automobile production, not included in the index,
was slightly smaller than in December, but considerably larger than in
January, 1925. Factory employment changed but little in January, but the
earnings of workers decreased considerably owing to the closing of plants
in most industries at the opening of the year for inventory-taking and re
pairs. The volume of building contracts awarded in January, although
seasonally less than in December, exceeded that of any previous January
on record. Contracts awarded were particularly large in the New York
and Atlanta Districts.
Trade
Sales of department stores and mail order houses showed more than
the usual seasonal decline in January but were larger than in January of last
year. Wholesale trade declined considerably and was in smaller volume than
a year ago. Stocks at department stores showed more than the usual in
crease in January and were about eleven per cent larger than at the end
of January, 1925. Freight car loadings declined in January and the daily
average for the month was approximately the same as a year earlier.
Prices
Wholesale prices, as measured by the index number of the Bureau of
Labor Statistics, remained practically unchanged from December to Jan
uary. By groups of commodities, prices of grains, coke, and paper and
pulp increased, while dairy products, cotton goods, bituminous coal, and
rubber declined. In the first three weeks of February there was a decline
in the prices of grains, and following the settlement of the strike in the an
thracite region, a drop in the prices of bituminous coal and coke. Price
advances were shown for refined sugar, copper, and petroleum.
Monthly averages of weekly figures for bankB
in 101 leading cities. Latest figures are aver
ages for first weekly report dates in February.
1925
Weekly rates in New York Money Market:
commercial paper rate on 4-to-6 months paper
and acceptance rate on 90-day paper.
Bank Credit
At member banks in leading cities the seasonal decline in the demand
for credit, which began at the turn of the year came to an end toward the
close of January, and in the early part of February the volume of loans
and investments at these banks increased considerably. The increase was
largely in loans for commercial purposes, which after declining almost con
tinuously from their seasonal peak early in October, advanced by more than
$50,000,000 in February. The growth in the commercial demand for credit
throughout the country, together with some increase in currency require
ments, was reflected in a withdrawal of funds from the New York market
and was a factor in the increase in the demand for reserve bank credit
after the end of January. Reserve banks* holdings of bills and securities
increased by about $66,000,000 between January 27 and February 17.
As the result of the withdrawal of funds from New York the rates on
call loans became somewhat firmer in February, but commercial paper rates
were slightly lower.
Index of National Business Conditions
The base (100) for all the charts except the first is the m onthly average for the 5 years 1919-1923 inclusive.
For the first chart, the base is the m onthly average for the three years 1921-1923.
C O M M E R C IA L
FAILURES
PC* Cl-NT
R E T A IL
PCBCJtMT
TRADE
PfP CfNT
W H O LESA LE
W lfftiT
TRADE
200
I
ISO
j
V
|*
..
J
K/
/ y
50
j1
j1
1
U
J
j
ISO
__A
V V UA V / * V
v v
j
50
A
A
59
O
o
1921
1922
1923
1924
1923
192 1
192 6
1922
1923
CAR
1924
I92S
192 4
L 0 A D IN G S
1921
PCRC w t
WHCeNT.
iw t
1923
iw 4
192 s
°
E X P O R T S OF M E R C H A N D IS E
P W C fittL.____________ ________ ______ ______
m cnt
200
A
V ' l
jr
J * __
Aw
1
1
ISO
ISO
100
100
so
so
w
COAL
P R O D U C T IO N
yJ f V
...
1921
P I6
1 92 2
192 J
IRO N
1924
1925
1*21
IM I
1924
1024
percent
/A A I V
V
„ V ,
0
1.
2.
3.
4.
5.
---•921
1922
1 923
132 4
0
1 92 5
1926
LATEST FIGURES
6. Wholesale Trade, December—«9.
Member Bank Credit: Loans, January— 121. Investments, J a n u a ry 7. Buildinx Permits, January— 141 .
135.
8 . Car Loadings, January— 110.
Member Bank Deposits; Demand, January— 121. Time— January—
9. Exports of Merchandise, January— 84.
181.
10
. Bituminous Coal Production, January— 134.
Check Payments, except New York, December— 137.
11 . P i« Iron Production, January— 132.
Commercial Failures, January— 178.
12.
Automobile Production, January— 145.
Retail Trade, December—203.
A
MM
{
0
1929
PRODUCTIO N
re*cen T .
ISO
1 92 S
l» t*
1
@FedFRASER